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Economy

Centre plans coastal economic zones to spur manufacturing

The Centre is preparing a fresh policy push to develop coastal economic zones as manufacturing and export hubs, aiming to attract investments, improve logistics and strengthen India's position in global supply chains.

News Arena Network - New Delhi - UPDATED: July 11, 2026, 05:52 PM - 2 min read

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The Centre is working on a comprehensive strategy to transform India's coastline into a major engine of industrial growth by developing Coastal Economic Zones (CEZs) and integrated manufacturing clusters linked to ports.

 

The initiative is aimed at attracting domestic and foreign investment, reducing logistics costs, boosting exports and enhancing India's competitiveness in global supply chains. Officials said the plan aligns with the government's broader vision of making India a global manufacturing hub while leveraging its 7,500-km coastline.

 

The proposed strategy envisages creating industrial ecosystems around major ports, with improved connectivity through road, rail and inland waterways. These zones are expected to house export-oriented industries, logistics parks, warehousing facilities and value-added manufacturing units.


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The government is also looking to integrate the coastal development programme with flagship initiatives such as PM Gati Shakti, the National Logistics Policy and Sagarmala, ensuring seamless movement of goods from factories to ports.

 

Officials believe the coastal manufacturing push could significantly lower transportation costs, improve export efficiency and create large-scale employment opportunities in port-linked states. Sectors such as electronics, automobiles, textiles, petrochemicals, food processing and renewable energy are expected to benefit from the proposed infrastructure.

 

The initiative comes as India seeks to diversify supply chains and position itself as an alternative global manufacturing destination. Policymakers are also exploring ways to encourage private sector participation through policy support, improved infrastructure and ease-of-doing-business reforms.

 

If implemented effectively, the coastal economic strategy is expected to accelerate industrialisation in maritime states, strengthen export competitiveness and contribute to India's long-term economic growth ambitions.

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